Competition law

Mai Nguyễn Dũng (LLM), 2025

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Class 1: Introduction to
Competition Law
Competition Law

Mai Nguyễn Dũng, 2025

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 Contents

• Overview of Competition and Competition in a Market Economy

• Economic Elements of Competition Law
• Overview of the History of World Competition Law
• Overview of the History of Vietnam Competition Law

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Compete: gud or bad?

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 1. Overview of
Competition and
Competition in a Market
Economy
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Freedom of choice

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2. Economic Elements of
Competition Law

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 MONO PERFECT
POLY COMPETITION

• There is only one company providing • All rms sell an identical product (the
the good or service and that p ro d u c t i s a “c o m m o d i t y ” o r
company can charge whatever price “homogeneous”).
it wants because consumers have no • All rms are price-takers (they cannot
alternatives and it is very dif cult for in uence the market price of their
competitors to enter the market. product).
• Market share has no in uence on price.
• Buyers have complete or “perfect”
information — past, present, and future
— about the product being sold and the
price charged by each rm.
• Firms can enter or exit the market
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without paying a fee.
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MONO PERFECT
POLY COMPETITION

oligopoly

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3. Overview of the
History of World
Competition Law

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3.1. In the US

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 Sherman Act 1890
• Section 1: Every contract, combination in the form of trust or otherwise, or
conspiracy, in restraint of trade or commerce among the several States, or with
foreign nations, is declared to be illegal.
• Section 2: Every person who shall monopolize, or attempt to monopolize, or
combine or conspire with any other person or persons, to monopolize any part of
the trade or commerce among the several States, or with foreign nations, shall be
deemed guilty of a felony [. . . ]
.

• In Spectrum Sports, Inc. v. McQuillan 506 U.S. 447 (1993) the Supreme Court
said: The purpose of the [Sherman] Act is not to protect businesses from the
working of the market; it is to protect the public from the failure of the market. The
law directs itself not against conduct which is competitive, even severely so, but
against conduct which unfairly tends to destroy competition itself.
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 Clayton Act 1914
• In those sections, the Act thoroughly discusses the following four principles of economic
trade and business:
‣ price discrimination between different purchasers if such a discrimination
substantially lessens competition or tends to create a monopoly in any line of
commerce;
‣ sales on the condition that (A) the buyer or lessee not deal with the competitors of the
seller or lessor ("exclusive dealings") or (B) the buyer also purchase another different
product ("tying") but only when these acts substantially lessen competition;
‣ mergers and acquisitions where the effect may substantially lessen competition or
where the voting securities and assets threshold is met;
‣ any person from being a director of two or more competing corporations, if those
corporations would violate the antitrust criteria by merging.
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3.1. In the EU

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 Article 101 TFEU
• The following shall be seen as incompatible with the internal market: all agreements between
undertakings, decisions by associations of undertakings and concerted practices which may
affect trade between Member States and which have as their object or effect the prevention,
restriction or distortion of competition within the internal market, and in particular those which:
‣ directly or indirectly x purchase or selling prices or any other trading conditions;
‣ limit or control production, markets, technical development, or investment;
‣ share markets or sources of supply;
‣ apply dissimilar conditions to equivalent transactions with other trading parties, thereby
placing them at a competitive disadvantage;
‣ make the conclusion of contracts subject to acceptance by the other parties of
supplementary obligations which, by their nature or according to commercial usage, have
no connection with the subject of such contracts.

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 Article 102 TFEU
• Any abuse by one or more undertakings of a dominant position within the internal market
or in a substantial part of it shall be prohibited as incompatible with the internal market in
so far as it may affect trade between Member States.
• Such abuse may, in particular, consist in:
‣ (a) directly or indirectly imposing unfair purchase or selling prices or other unfair trading
conditions;
‣ (b) limiting production, markets or technical development to the prejudice of consumers;
‣ (c) applying dissimilar conditions to equivalent transactions with other trading parties,
thereby placing them at a competitive disadvantage;
‣ (d) making the conclusion of contracts subject to acceptance by the other parties of
supplementary obligations which, by their nature or according to commercial usage,
have no connection with the subject of such contracts.
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4. Overview of the
History of Vietnam
Competition Law

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 Competition Law 2004
• Previously, Vietnam had a number of scattered regulations regulating
competition activities.
• Commitment to a market-based economic system.
• The need to regulate the market economy gradually developed.
• VCL 2004 is the rst competition law promulgated in Vietnam, regulating
anti-competitive conduct, unfair competition conduct, and procedures for
resolving competition cases.
• VCL 2004 is a combination of provisions of US and EU law, and also has
similarities with the OECD Framework for the Design and Implementation of
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Competition Law and Policy.

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 Competition Law 2018
• There are very few cases where VCL 2004 were applied.
• The burden of proof lies with the implementer. SMEs?
• Cases of Grab and Uber.
• Some provisions in VCL 2004 are no longer suitable for the context of the
market economy and digital economy.

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 Competition Law 2018
Foreign enterprises operating in Vietnam are
subject to this law.

Strengthen economic regulations.

Public law vs private law.

VCL 2018
More exible and dynamic.

Provisions on economic concentration are added.

Leniency program added.

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National Competition Authority.

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 T/F Statement

• Similar to US or EU law, Vietnam's Competition Law has provisions on unfair

competition.
• The Sherman Act only regulates collusive practices (cartels).
• Article 101 of the TFEU only regulates agreements to restrict competition
between undertakings.
• Competition law was created to correct market failures.
• In oligopoly markets, information asymmetry does not occur.

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